Trust Deed in Glasgow

Information about Trust Deed in Glasgow

If you are finding your debt situation is getting on top of you with financial pressure coming from all areas including multiple credit/store cards and personal loans. It may be you are starting to look towards receiving expert advice in order to find the best solution for you.

It may be your finances have tightened with the result you are juggling payments to multiple credit card bills, the rent/mortgage and simply get to a position where you need to get debt advice.

Often there is a variety of solutions that may be appropriate one of which could be a trust deed or protected trust deed. The trust deed takes a “protected status” once your creditors have agreed to the terms of the arrangement.

A Trust Deed is similar to an individual voluntary agreement. The principal of both being over a set period of time you make monthly payments towards your debts in one payment to your trustee who then redistributes proportionately to your creditors over the period of the solution .In the case of a protected trust deed this is typically 3years with an IVA being over 5 years on average.

Trustee in a Trust Deed

This agreement is conducted on your behalf by a licensed insolvency practitioner thereafter referred to as the trustee, he works on behalf of yourself and the creditors to ensure you pay as much towards your debts as is reasonable. The trustee will also ensure that all harassment towards you from the creditors is stopped and should continued correspondence continue after you have entered a protected trust deed you should inform your trustee of this.

A protected trust deed legally prevents your lenders contacting you in relation to outstanding debts ensuring peace of mind. Another benefit behind this solution is all interest and charges are frozen ensuring your debt levels do not increase further.
In order for a trust deed to gain protected trust deed status the details are registered in the Edinburgh Gazette. If no creditors object after this period has lapsed then the trust deed becomes protected. The period given to creditors to raise an objection is five weeks.

It is important to note that whilst this arrangement is not as severe as sequestration/bankruptcy it is a legally binding agreement and as such should you default on the agreement you could most probably be made bankrupt and your credit rating would be severely impacted.

However, if you are disciplined enough to keep on top of the agreement, a trust deed can be a useful way to get out of debt problems and significantly reduce the amount that you have to pay creditors.